Industry Insights
The China frozen food market was valued at USD 14,018.8 million in the year 2016 and is expected to grow over the forecast period, driven primarily by an increase in demand for frozen food owing to growing urbanization that has led Chinese people to favour western style dishes and food habits. As China is in its transition state, 20% of its population is becoming wealthier that is expected to demand more goods and more high-quality food. Local Chinese people are gradually favouring frozen food products owing to their ease of preparation and longer shelf life than the ambient and fresh products. Enhanced freezing technology along with an increase in the use of high-quality ingredients is further expected to boost the market of frozen food products in China over the forecast period.
China frozen food market revenue, by type, 2014 - 2024 (USD Million)
Frozen food consuming population is increasing in China owing to easy preparation, no-clean, and simple operation. Channel for industry can also be further extended to schools, units, military camp, tourism, fast food industry, and other fields which will provide an opportunity for expansion. Key Players are building intelligent giant factories and storages to focus on cold storage transport, usage of high-quality ingredients to cut the processing time and improve the production volume.
Segmentation by Type
• Frozen ready meals
• Frozen pizza
• Frozen fish/seafood
• Frozen Meat
• Frozen potato products
• Frozen bakery products
• Others
Frozen seafood accounted for the maximum market revenue share of about more than one-fourth in the year 2016 owing to China is the third largest market for fish imports and clearly the vital producer in both fishing and in aquaculture. However, frozen potato products are expected to be the fastest growing segment owing to ease of consumption and cooking, followed by frozen meat and frozen ready meals. Others segment which includes soups, fruits, and vegetables is expected to show faster growth than bakery products over the coming years.
According to a study by Chinese urban consumer preference, shopping behaviour and preferences, it was found that 48% of Chinese people purchased frozen pork. Adding further, 70% of Chinese population believe that low food safety risk is more important than low food cost hence such positive qualities are expected to boost the industry over the coming years.
Segmentation by Distribution Channel
• Online
• Offline
Supermarkets, hypermarkets and convenient stores are expected to enjoy maximum profit margin owing to upcoming construction activity in the form of shopping malls which is expected to provide opportunities to new players to establish their market and local players can further grow their market with in-store promotions and on-site demonstration.
Offline distribution is still the leading distribution channel in China and has accounted for a maximum market revenue share in the year 2016 and is expected to show descent growth in the future. Online distribution channel which has accounted for very minimum market revenue share in the year 2016, however, is expected to grow in future owing to an ageing population that prefer to buy online instead of visiting stores.
Competitive landscape
Concerned manufacturers with good market competition are coming up with new strategies, new technology and product diversification. This new trend of introducing new technologies, more creative food innovations, and better ingredients is expected to improve positive effect on Chinese industry for long term. Increase in the number of consumers favoring frozen food products, it is expected to boost the import.
Top companies in the Chinese market includes Sinian, Sanquan Food Co Ltd, and Longfeng. However, the market competition among these three top companies is oligopolistic in nature and Sanquan is anticipated to be the largest of all since the company’s products are exported all over the world.
